ARATERE © Interislander

KiwiRail sells 26-year-old ferry for scrapping as newbuild contract moves one step closer

FerryKiwiRail has entered into an agreement to sell the aged and out of service Interislander ferry ARATERE to a buyer which will deliver it to a specialist recycling shipyard in India. ARATERE was delivered as a newbuild 26 years ago to KiwiRail from Spanish shipyard Barreras and was retired from service in August to make way for port infrastructure needed for the arrival of two brand new rail-enabled ferries arriving in 2029, for which it is now believed a Letter of Intent (LOI) has been signed with the GSI Shipyard in China.

“ARATERE is not suitable for most ferry operators due to its age and the fact that it would require significant modification or specialist port infrastructure. Therefore, we have pursued a safe, efficient and environmentally responsible recycling option”, says KiwiRail in a press announcement.

Here KiwiRail states that it has been liaising closely with New Zealand’s Environmental Protection Authority (EPA) throughout the process. Once the buyer takes ownership of the ship, it will be responsible for crewing its journey to the recycling yard subject to review by the EPA, which is pending. To maximise resource use, KiwiRail has repurposed appliances, furniture, and other items from ARATERE across its fleet and operations, with any remaining quality items donated.

Oct 13 2025